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A guide to fraud and how we can prevent it - Westminster City Council

A guide to fraud and how we can prevent it - Westminster City Council

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HOUSING BENEFIT AND<br />

COUNCIL TAX BENEFIT<br />

A <strong>guide</strong> <strong>to</strong> <strong>fraud</strong><br />

<strong>and</strong> <strong>how</strong> <strong>we</strong> <strong>can</strong><br />

<strong>prevent</strong> <strong>it</strong><br />

BL/FRA Revised March 2012


Housing Benef<strong>it</strong> <strong>and</strong> <strong>Council</strong> Tax Benef<strong>it</strong> –<br />

a <strong>guide</strong> <strong>to</strong> <strong>fraud</strong> <strong>and</strong> <strong>how</strong> <strong>we</strong> <strong>can</strong> <strong>prevent</strong> <strong>it</strong><br />

This leaflet explains what<br />

Housing Benef<strong>it</strong> <strong>and</strong><br />

<strong>Council</strong> Tax Benef<strong>it</strong> <strong>fraud</strong><br />

is <strong>and</strong> <strong>how</strong> <strong>we</strong> <strong>can</strong> work<br />

<strong>to</strong>gether <strong>to</strong> <strong>prevent</strong> <strong>it</strong>.<br />

The rules are the same<br />

whichever area you live in.<br />

If you don’t know which<br />

council covers the area<br />

your property is in, you<br />

<strong>can</strong> find this information<br />

on your council tax bill.<br />

What is Housing Benef<strong>it</strong> <strong>and</strong><br />

<strong>Council</strong> Tax Benef<strong>it</strong> <strong>fraud</strong>?<br />

Benef<strong>it</strong> <strong>fraud</strong> is when someone makes a claim for<br />

benef<strong>it</strong> based on information that they know is<br />

false or inaccurate. A claim could also become<br />

<strong>fraud</strong>ulent if the person claiming benef<strong>it</strong> has not<br />

<strong>to</strong>ld us about a change in circumstances that<br />

would reduce the amount of benef<strong>it</strong> they are<br />

ent<strong>it</strong>led <strong>to</strong>. Sometimes, only the person claiming<br />

benef<strong>it</strong> is responsible for benef<strong>it</strong> <strong>fraud</strong>, <strong>and</strong><br />

sometimes their l<strong>and</strong>lord, an employer, a<br />

representative or someone else who helps <strong>to</strong><br />

fill in the benef<strong>it</strong> application form may have<br />

helped them.<br />

Benef<strong>it</strong> <strong>fraud</strong> is a criminal offence. If <strong>we</strong> think<br />

someone is claiming benef<strong>it</strong> they are not ent<strong>it</strong>led<br />

<strong>to</strong>, our dedicated team will investigate them.<br />

If <strong>we</strong> find evidence <strong>to</strong> prove that a person is<br />

comm<strong>it</strong>ting <strong>fraud</strong>, <strong>we</strong> may prosecute them, make<br />

them pay a fine or issue them w<strong>it</strong>h a formal<br />

warning, called a caution. In any case, <strong>we</strong> would<br />

be looking <strong>to</strong> claim back the <strong>to</strong>tal amount of<br />

benef<strong>it</strong> which has been overpaid. In certain<br />

circumstances, <strong>we</strong> may also confiscate other<br />

money or assets if <strong>we</strong> believe they are the<br />

proceeds of crime.<br />

Why is <strong>it</strong> important <strong>to</strong> s<strong>to</strong>p<br />

Housing Benef<strong>it</strong> <strong>and</strong> <strong>Council</strong> Tax<br />

Benef<strong>it</strong> <strong>fraud</strong>?<br />

Benef<strong>it</strong> <strong>fraud</strong> is costing taxpayers an estimated<br />

£2 billion each year. This is money that could be<br />

spent on other v<strong>it</strong>al services. Fraud affects <strong>how</strong><br />

much council tax <strong>and</strong> income tax you have <strong>to</strong><br />

pay <strong>and</strong> the level of resources available <strong>to</strong> share<br />

among our commun<strong>it</strong>y.<br />

We have a duty <strong>to</strong> protect benef<strong>it</strong> funds from<br />

<strong>fraud</strong> <strong>and</strong> abuse. We also have a duty <strong>to</strong><br />

investigate <strong>fraud</strong> <strong>and</strong> the Government measures<br />

<strong>how</strong> <strong>we</strong>ll <strong>we</strong> are doing this.<br />

What is being done <strong>to</strong> help s<strong>to</strong>p<br />

<strong>fraud</strong> in benef<strong>it</strong> claims?<br />

Our Fraud Investigation team works closely w<strong>it</strong>h<br />

other agencies <strong>to</strong> reduce benef<strong>it</strong> <strong>fraud</strong>. They<br />

carry out joint investigations w<strong>it</strong>h the<br />

Department for Work <strong>and</strong> Pensions <strong>and</strong><br />

neighbouring councils <strong>and</strong> the investigations <strong>can</strong><br />

often involve the police, the Border Agency <strong>and</strong><br />

HM Revenue & Cus<strong>to</strong>ms.<br />

We are involved in ‘data matching exercises’,<br />

most of which are carried out by the Housing<br />

Benef<strong>it</strong> Matching Service <strong>and</strong> the Aud<strong>it</strong><br />

Commission’s National Fraud In<strong>it</strong>iative –<br />

including Aud<strong>it</strong> Scotl<strong>and</strong> in Scotl<strong>and</strong>, who check<br />

information held by public author<strong>it</strong>ies <strong>and</strong> a<br />

number of private companies. Any information<br />

that does not match is referred <strong>to</strong> the relevant<br />

author<strong>it</strong>y <strong>to</strong> investigate.<br />

2


We investigate all allegations of benef<strong>it</strong> <strong>fraud</strong>.<br />

If our investigations s<strong>how</strong> that someone is<br />

comm<strong>it</strong>ting <strong>fraud</strong>, <strong>we</strong> will consider prosecuting<br />

or taking other action against the person or<br />

people involved, depending on their personal<br />

circumstances <strong>and</strong> <strong>how</strong> serious the case is.<br />

Our decisions will be in line w<strong>it</strong>h our Benef<strong>it</strong><br />

Fraud Sanctions policy.<br />

What types of Housing Benef<strong>it</strong><br />

<strong>and</strong> <strong>Council</strong> Tax Benef<strong>it</strong> <strong>fraud</strong><br />

are there?<br />

The following are some common types of<br />

<strong>fraud</strong>ulent claims.<br />

■<br />

People not telling us that a partner,<br />

relative, friend or lodger is living in<br />

or has left the property<br />

■<br />

■<br />

People claiming benef<strong>it</strong> for an<br />

address they are subletting or not<br />

living at<br />

This is where a person is claiming benef<strong>it</strong><br />

for an address they are not living at or are<br />

subletting <strong>to</strong> somebody else. It could also be<br />

when a person claims benef<strong>it</strong> for an address<br />

that doesn’t exist or where they may not<br />

have <strong>to</strong> pay rent. This type of <strong>fraud</strong> could<br />

happen w<strong>it</strong>h the help <strong>and</strong> involvement of the<br />

l<strong>and</strong>lord or other tenants.<br />

People who continue <strong>to</strong> claim<br />

benef<strong>it</strong> on a property after they<br />

have moved<br />

If someone does not tell us that they have<br />

moved, but continues <strong>to</strong> accept payments of<br />

Housing Benef<strong>it</strong> for their previous address,<br />

they are comm<strong>it</strong>ting <strong>fraud</strong>.<br />

■<br />

■<br />

■<br />

If someone does not tell us about someone<br />

else living in or moving out of their home,<br />

this is <strong>fraud</strong> as <strong>it</strong> would affect their benef<strong>it</strong><br />

ent<strong>it</strong>lement.<br />

People not telling us that they are<br />

working, the hours they work or<br />

<strong>how</strong> much they earn<br />

It is <strong>fraud</strong> if someone claiming benef<strong>it</strong> does<br />

not tell us they are working <strong>and</strong> so may<br />

not be ent<strong>it</strong>led <strong>to</strong> other benef<strong>it</strong>s such as<br />

Jobseeker’s Allowance or Income Support.<br />

It could also be that they are working<br />

more hours or earning more than they<br />

have <strong>to</strong>ld us.<br />

People not telling us about all their<br />

savings <strong>and</strong> investments<br />

This is where someone does not tell us<br />

about all bank or building society accounts,<br />

cash, s<strong>to</strong>cks <strong>and</strong> shares <strong>and</strong> other types of<br />

savings, as this would affect their ent<strong>it</strong>lement<br />

<strong>to</strong> benef<strong>it</strong>.<br />

People not telling us about a<br />

property they own, e<strong>it</strong>her in the<br />

UK or abroad<br />

■<br />

■<br />

People not giving us full details of<br />

all their income<br />

This is where the person claiming benef<strong>it</strong><br />

does not tell us about all of their income or<br />

changes <strong>to</strong> the amount they receive, as this<br />

would affect their ent<strong>it</strong>lement <strong>to</strong> benef<strong>it</strong>.<br />

Income includes pensions (both works <strong>and</strong><br />

private pensions), tax cred<strong>it</strong>s, student loans,<br />

grants or bursaries.<br />

People not telling us that they, the<br />

father of their children or a relative<br />

owns the property for which they<br />

are claiming Housing Benef<strong>it</strong><br />

We <strong>can</strong>not pay Housing Benef<strong>it</strong> if the<br />

property is owned by the person making the<br />

claim, or the father of any of their children,<br />

so this type of <strong>fraud</strong> is where the person<br />

claiming e<strong>it</strong>her fails <strong>to</strong> tell us they own the<br />

property or does not tell the truth about<br />

the person who does own the property.<br />

This also applies in some circumstances if<br />

a relative of the person claiming owns the<br />

property.<br />

This <strong>fraud</strong> is where a person claiming benef<strong>it</strong><br />

does not tell us about property or l<strong>and</strong> they<br />

own (for which they may be receiving rent).<br />

3


I think I know someone who is<br />

comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong> –<br />

what should I do?<br />

It is important that you let us know. If you<br />

suspect that somebody is comm<strong>it</strong>ting benef<strong>it</strong><br />

<strong>fraud</strong> <strong>we</strong> want <strong>to</strong> hear from you.<br />

■<br />

■<br />

■<br />

You <strong>can</strong> contact your local council (you <strong>can</strong><br />

find the name of your local council on your<br />

council tax bill).<br />

You <strong>can</strong> phone the National Benef<strong>it</strong> Fraud<br />

Hotline on Freephone 0800 328 6340 or<br />

0800 854440 or 0800 678 3722 for Welsh<br />

speakers.<br />

You <strong>can</strong> fill in the online form at<br />

www.secure.dwp.gov.uk/benef<strong>it</strong><strong>fraud</strong>/.<br />

What information do I need<br />

<strong>to</strong> give?<br />

The law says that there has <strong>to</strong> be a good reason<br />

for investigating someone for benef<strong>it</strong> <strong>fraud</strong> – so<br />

you will need <strong>to</strong> give as much of the following<br />

information as possible.<br />

■<br />

■<br />

■<br />

■<br />

■<br />

■<br />

■<br />

■<br />

■<br />

The names of the people you believe are<br />

comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong><br />

Their addresses<br />

Details of anyone else involved<br />

Descriptions of the people involved, such as<br />

their height, build <strong>and</strong> hair colour<br />

Descriptions of their vehicles, including<br />

number plates <strong>and</strong> colours<br />

Why you suspect <strong>fraud</strong> <strong>and</strong> what you believe<br />

the people are doing<br />

Details of any work the people are doing,<br />

including the type of work, names <strong>and</strong><br />

addresses of their employers, the hours they<br />

work <strong>and</strong> <strong>how</strong> much they earn<br />

Details of any partners <strong>we</strong> may not have<br />

been <strong>to</strong>ld about, including their name,<br />

description, employment, <strong>and</strong> times they<br />

arrive at <strong>and</strong> leave the property<br />

Details of them spending lots of money,<br />

which you may not expect w<strong>it</strong>h somebody<br />

on benef<strong>it</strong>s<br />

Do I have <strong>to</strong> give my name?<br />

You <strong>can</strong> choose not <strong>to</strong> give your contact details<br />

if you prefer, but <strong>it</strong> helps if you do tell us who<br />

you are so that <strong>we</strong> <strong>can</strong> contact you if <strong>we</strong> have<br />

any questions.<br />

What happens w<strong>it</strong>h the<br />

information I give?<br />

Our Fraud Investigation team will look at the<br />

information you give. They will keep the<br />

information confidential.<br />

If there is enough information, they will check<br />

the person’s benef<strong>it</strong> claim. The investigation may<br />

take some time, <strong>and</strong> the team <strong>can</strong>not tell you<br />

about what they find as a result of the<br />

information you have given.<br />

What action will you take?<br />

Sometimes <strong>we</strong> will not take any action as the<br />

person may not be comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong>. For<br />

example, <strong>it</strong> might be that the person has already<br />

<strong>to</strong>ld us they are working but this does not affect<br />

their benef<strong>it</strong>. Housing Benef<strong>it</strong> <strong>and</strong> <strong>Council</strong> Tax<br />

Benef<strong>it</strong> <strong>can</strong> be paid <strong>to</strong> people who are in work<br />

but have a low income.<br />

We will only take action if <strong>we</strong> find the person<br />

has been comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong>. Action <strong>can</strong><br />

include s<strong>to</strong>pping a person’s benef<strong>it</strong>s, making<br />

them pay a fine, <strong>and</strong> taking them <strong>to</strong> court, which<br />

could lead <strong>to</strong> a prison sentence.<br />

4


Where <strong>can</strong> I get more advice?<br />

If you want more help or advice, contact us.<br />

You <strong>can</strong> find contact details on your council tax bill or in your local phone book.<br />

National Fraud Hotline<br />

Wr<strong>it</strong>e <strong>to</strong>: National Fraud Hotline, PO Box 647, Pres<strong>to</strong>n PR1 1WA<br />

Freephone: 0800 328 6340<br />

Webs<strong>it</strong>e: www.targeting<strong>fraud</strong>.gov.uk<br />

Independent advice<br />

If you need independent advice, contact your local c<strong>it</strong>izens advice bureau.<br />

You <strong>can</strong> find their phone number <strong>and</strong> other local advice agencies in your local phone book,<br />

at your local library or by contacting us.<br />

Other formats<br />

You <strong>can</strong> get the information in this leaflet in large print <strong>and</strong> in Braille.<br />

Vis<strong>it</strong> our <strong>we</strong>bs<strong>it</strong>e at www.benef<strong>it</strong>-leaflets.org for more information.<br />

5


This leaflet is a <strong>guide</strong> <strong>and</strong> does not cover every circumstance. Some of the information in this<br />

leaflet may have been simplified <strong>and</strong> some information may become out of date because of<br />

changes <strong>to</strong> the law. We recommend that you get independent advice before making financial<br />

decisions based on this leaflet.<br />

© Copyright Dover District <strong>Council</strong> www.benef<strong>it</strong>-leaflets.org

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